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More Articles by Chandan Sapkota

Senior Fellow, Nepal Economic Forum and Former Economics Officer at Asian Development Bank, Nepal Resident Mission
Jul 2016
Although a bit late, the government is finally gearing up to formulate a long-term vision for economic development. The tentative targets for now are to graduate from the Least Developed Country (LDC) status by 2022 and to attain the slew of Sustainable Development Goals by 2030. However, a bold and time-bound economic development vision for the country should go beyond these goalposts that were contextualized on the basis of global targets. Nepal should aim to become a vibrant lower-middle income economy within the next two decades. Read more
Apr 2017
A summarized version of the FY 2017 growth and inflation outlook adapted from ADB Nepal's Macroeconomic Update: Nepal (March 2017) Read more
Apr 2017
TIA is facing severe space crunch as the demand for parking space (due to the increasing number of domestic as well as international airlines) has far outstripped supply. There is a project to upgrade/expand runway, terminal spaces and other infrastructure at the TIA so that it can handle more passengers. Read more
Apr 2017
A large base effect together with favourable exogenous factors (good monsoon rains and remittances-backed demand of imported as well as domestically produced goods, whose supplies gradually normalized) and to some extent the government’s efforts led to this impressive growth rate. An important challenge would be to sustain this rate. It is easy to move from almost nil growth to over 6% growth; but it is difficult to sustain the growth at this level. It requires a rapid and meaningful structural transformation. Read more
May 2017
If the revenue target is not met, then the government will for sure try to borrow a large amount of money from the market (usually it doesn’t exhaust its borrowing target unless there is a necessity to tweak the budget figures: for instance, to ensure that the fiscal budget is not in surplus like in the past). Read more
Aug 2017
The government’s GDP growth target is 7.2%, up from a 6.9% growth (at market prices) in FY2017, thanks to a favorable base effect, good monsoon, improved energy supply, reconstruction activities and normalization of supplies after two years of disruption (earthquakes in FY2015 and trade blockade in FY2016). Achieving a higher growth rate in FY2018 would require stronger factors than in FY2017. However, this is an unlikely scenario. Read more
Oct 2017
Except for a few episodes of growth spurts, economic growth has largely been low yet volatile in Nepal, mostly stagnating below 5%. Similarly, inflation has been stubbornly high, mostly settling in between 6% and 12%. Public expenditure absorption capacity is receding but revenue mobilisation is robust on the back of taxes on remittance-financed imports and domestic consumption. Outstanding public debt is only about a quarter of gross domestic product (GDP). External sector is largely stable, but is vulnerable to fluctuation in remittance inflows. Financial sector is relatively stable, but remains exposed to asset-liability mismatches arising from recurring sources, including reckless lending growth amid slowdown in deposit growth, evergreening of troubled assets and mismanagement. Meanwhile, unemployment rate remains high. Read more